EID Parry (India) Ltd is a diversified agri-business company with operations in sugar, ethanol, nutraceuticals, and farm inputs. A part of the century-old Murugappa Group, it has historically been a stable player in India’s sugar and biofuel sectors. However, recent financial results show a sharp deterioration—net losses, negative ROE/ROCE, and a steep profit decline—primarily due to volatility in sugar pricing, input costs, and one-time adjustments. While the long-term outlook for ethanol blending remains positive, near-term fundamentals are weak. This article provides a realistic assessment and share price targets for 2026–2030, based on current data and sector dynamics.
EID Parry: Company Overview
Incorporated: 1788 (one of India’s oldest companies)
Business Segments:
Sugar & co-generation
Ethanol (key beneficiary of India’s E20 policy)
Nutraceuticals (health supplements under “Amrutanjan” and “Parry’s”)
Farm inputs (via Coromandel International, a group company)
Ownership: Part of the Murugappa Group; promoter holding at 41.44%
Listed: Yes – on BSE (500130) and NSE (EIDPARRY)
Clarifications:
Is it profitable? No—EPS is –₹38.88, and profit declined by 499.94% YoY (i.e., turned into a loss).
Why is ROE negative? Due to losses despite revenue growth—ROE: –15.74%, ROCE: –9.10%.
Future outlook: Tied to ethanol demand, sugar cycle recovery, and nutraceutical expansion—but near-term risks remain high.
EID Parry: Key Financial Snapshot
Metric
Value
Market Capitalization
₹15,673.25 Cr
Current Share Price
₹881
52-Week High / Low
₹1,075 / ₹639
P/E (TTM)
Not applicable (negative EPS)
P/B (TTM)
6.92
Book Value (TTM)
₹127.35
EPS (TTM)
–₹38.88
ROE
–15.74%
ROCE
–9.10%
Dividend Yield
0%
Debt
₹1,210.74 Cr
Cash Reserves
₹108.05 Cr
Sales Growth (YoY)
12.80%
Profit Growth (YoY)
–499.94% (loss)
Shareholding Pattern
Category
Holding (%)
Promoters (Murugappa Group)
41.44%
Public (Retail)
29.66%
Domestic Institutions (DII)
16.28%
Foreign Institutions (FII)
12.61%
Others
0%
Note: Strong institutional backing reflects long-term trust in the Murugappa brand.
EID Parry Share Price Target Forecast (2026–2030)
Given negative earnings, high P/B, and cyclical headwinds, upside is limited unless profitability returns. Targets assume:
Return to profit by FY27 as sugar/ethanol margins stabilize
P/B compression from 6.9x to 4.5–5.0x over time
No dividend payout until losses reverse
Year
Target Price Range (₹)
2026
₹850 – ₹950
2027
₹880 – ₹1,000
2028
₹920 – ₹1,080
2029
₹960 – ₹1,160
2030
₹1,000 – ₹1,250
⚠️ Note: These are range-bound, conservative targets—not bullish projections. The stock lacks earnings visibility for aggressive re-rating.
Year-wise Breakdown
EID Parry Share Price Target 2026
Year
Target 1
Target 2
2026
₹850
₹950
Rationale: Near-term pressure from sugar inventory losses and high cane costs caps upside. Support comes from ethanol blending momentum and brand value.
EID Parry Share Price Target 2027
Year
Target 1
Target 2
2027
₹880
₹1,000
Rationale: Expected recovery in ethanol margins and potential sugar price stabilization could bring back modest profits.
EID Parry Share Price Target 2028
Year
Target 1
Target 2
2028
₹920
₹1,080
Rationale: By 2028, E20 ethanol rollout may drive consistent cash flows. Nutraceutical segment could add margin resilience.
EID Parry Share Price Target 2029
Year
Target 1
Target 2
2029
₹960
₹1,160
Rationale: Long-term play on India’s biofuel policy and agri-diversification. Execution risk remains due to commodity exposure.
EID Parry Share Price Target 2030
Year
Target 1
Target 2
2030
₹1,000
₹1,250
Rationale: The upper end assumes sustained profitability, debt reduction, and market leadership in ethanol. Even then, valuation remains rich vs peers.
Strengths vs Risks
✅ Strengths
Part of Murugappa Group—strong governance and legacy
Ethanol policy tailwind (E20 mandate by 2025–26)
Diversified into nutraceuticals—higher-margin segment
Strong institutional ownership
⚠️ Risks
Negative ROE/ROCE – capital destruction
High P/B (6.92x) with no earnings support
Cyclical sugar business – volatile pricing
Zero dividends – not suited for income investors
Investment Suitability
Factor
Assessment
Risk Profile
High (commodity-linked loss-making)
Time Horizon
Long-term (5+ years)
Volatility
Very High
Dividend/Income
None (0% yield)
Ideal Investor
Speculative investor betting on ethanol turnaround; not for conservative portfolios
FAQs
A realistic range is ₹850 – ₹950, assuming no major sugar price collapse.
By 2030, it could reach ₹1,000 – ₹1,250 if ethanol margins improve and losses reverse.
No—those levels are unrealistic. The stock trades above ₹880, so ₹40/₹50 likely confuses face value (₹1) with market price.
It’s part of the Murugappa Group, with 41.44% promoter holding controlled by the Murugappa family.
No dividend currently (0% yield). The company reported a net loss, so payouts are unlikely until profitability returns.
Due to heavy losses, negative return ratios, and sugar sector headwinds—despite 12.8% sales growth.
Only for high-risk investors who believe in India’s ethanol story and Murugappa’s turnaround ability. Not suitable for safety-focused portfolios.
Final Verdict
EID Parry is a legacy agri-business undergoing cyclical stress. While its ethanol and nutraceutical segments offer long-term optionality, current losses and negative returns make it a speculative bet. Our 2026–2030 price targets (₹850–₹1,250) reflect cautious optimism—contingent on earnings recovery. Investors should wait for clear signs of profitability before considering entry.
📌 Disclaimer: Price targets are estimates based on current fundamentals and sector trends. They are not investment advice. Please consult a SEBI-registered advisor.
